Mon Apr 07 13:51:07 UTC 2025: ## Global Markets Crash in Response to Trump’s Tariffs

**New York/Beijing** – Global stock markets experienced a dramatic crash today, following the announcement of new tariffs by US President Donald Trump and subsequent retaliatory measures from China. Asian and European markets were particularly hard hit, with significant losses across major indices. The Nikkei 225 in Japan and Taiwan’s Taiex both triggered circuit breakers due to the sharp sell-offs. The Bombay Stock Exchange saw the Sensex and Nifty indices plummet by over 5%, wiping out billions of dollars in investor wealth. European markets also suffered heavy losses, with Paris, London, Amsterdam, and Oslo all experiencing drops exceeding 3%. Even Wall Street felt the impact, with the S&P 500 opening down over 3%.

The crisis stems from Trump’s renewed imposition of tariffs, which he defended on his social media platform, Truth Social. He insisted that oil, interest, and food prices are down, claiming there is “NO INFLATION” and that the US is gaining billions from the tariffs. He singled out China as the “biggest abuser,” citing their announcement of a 34% retaliatory tariff on US imports starting April 10th. China, in response, stated that threats and pressure are not the appropriate methods for resolving trade disputes and plans to challenge the tariffs at the World Trade Organization. They also announced restrictions on exports of rare earth elements.

Trump, however, attributed the market reaction to China’s “panic,” claiming they played it wrong. He maintains that his tariff strategy will force renegotiation of trade deals and encourage domestic manufacturing. He further urged Americans to remain strong and patient, believing his policies will ultimately lead to national greatness.

Despite Trump’s optimism, Federal Reserve Chair Jerome Powell warned that the tariffs are likely to increase inflation and slow economic growth, raising the risk of high unemployment. He stated that it’s too early to consider changes to US monetary policy, despite Trump’s repeated calls for immediate interest rate cuts. The divergence in opinion between the President and the Federal Reserve highlights the growing uncertainty surrounding the global economic outlook. The market crash serves as a stark reminder of the potential consequences of escalating trade tensions.

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